CAN U CLARIFY MY DOUBT ABOUT THE TDS ON FREIGHT . THE CASH PAYMENT OF FREIGHT HAS BEEN INCREASED FRON 20000RS. TO 35000RS. AND NO TDS IS NEED TO BE DEDUCTED IF PAN NO. IS QUOTED. BUT IF THERE IS NO PAN NO. THERE IS A NEED OF TDS TOBE DEDUCTED @ 20% .
I WANT TO IF WE RECEIVE AN SINGLE FREIGHT BILL OF R. MORE THAN 20000RS. AND TRANSPORTER HAVE NO PAN NO. WILL IT BE LIABLE FOR TDS?
as the payment is less than Rs.35000 its not necessary to deduct TDS, as there is no necessity to deduct tds, the question of PAN doesnt arise..
Hi Friends,
Smart question and an intelligent answer............:)
I wanna go with shyam's reply
The cash payment has increased to 35,000/- only for the purpose of sec 40A3 Disallowance. . But as per sec 194C
Tax is required to be deducted at source where the amount credited or paid to a contractor exceeds Rs.20,000( 30,000 from 1/06/2010) in a single payment or rs 50,000 (Rs.75,0000 from 01/06/2010) in aggregate during a F.Y..
As he is not having pan tds is to be deducted at 20%
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